China strengthens cybersecurity review rules on overseas IPOs

Chinese government seeks to increase scrutiny on companies looking to list overseas. China’s cyberspace authority proposed a series of revisions to the cybersecurity review rules of overseas IPO with the aim ‘to control the risk of companies exporting ‘core’ and ‘important’ data, or being ‘influenced, controlled, or abused’ by foreign governments during the listing process, according to the draft provision, as reported by Technode.

The new cybersecurity review process would require companies that control data of more than 1 million users to seek permission from regulators before filing for IPOs overseas.

Related issues